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- 1. MDIA WHY? SOCIETY NEEDS BETTER METRICS MULTI DIMENSION IMPACT ACCOUNTING File: MDIA-p3-01-1-WHY-150727.odp Peter Burgess (c) All rights reserved
- 2. EXPLANATION This slideset is A WORK-IN-PROGRESS. It will be upgraded periodically. It is part of a series of more than 50 slidesets. Navigation to all of these is available here: FEEDBACK is welcome. Please email to Peter Burgess [email protected] with a catchy phrase in the subject line so that it gets attention, and please identify the specific slideset(s) involved. This explanation is version v150801. The most current text is available at: MULTI DIMENSION IMPACT ACCOUNTING http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=txt00010199 http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=N1-Slidesets-p3
- 3. The GOAL is to design and deploy a system of metrics for management that accounts for impact on people and planet as rigorously as double entry accounting accounts for money transactions that impact profit MULTI DIMENSION IMPACT ACCOUNTING
- 4. Corporate profit performance over the past fifty years has been impressive MULTI DIMENSION IMPACT ACCOUNTING
- 5. GDP growth over the past 50 years very strong MULTI DIMENSION IMPACT ACCOUNTING
- 6. But labor income over the past fifty years not so good. MULTI DIMENSION IMPACT ACCOUNTING
- 7. And environmental issues getting worse not better. MULTI DIMENSION IMPACT ACCOUNTING
- 8. This is an unsustainable trajectory for our complex global socio-enviro-economic system MULTI DIMENSION IMPACT ACCOUNTING
- 9. SOCIO PEOPLE ENVIRO PLANET ECONOMIC MAN BUILT CAPITAL MULTI DIMENSION IMPACT ACCOUNTING
- 10. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun EOPSOCIO - PEOPLE
- 11. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun EOPSOCIO - PEOPLE
- 12. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun EOPENVIRO - PLANET
- 13. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun EOPENVIRO - PLANET
- 14. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun EOPECONOMIC MAN BUILT CAPITAL
- 15. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun EOPECONOMIC MAN BUILT CAPITAL
- 16. The balance between PEOPLE, PLANET and PROFIT is most likely unsustainable MULTI DIMENSION IMPACT ACCOUNTING
- 17. The following slides reflect what has happened over the past millions of years MULTI DIMENSION IMPACT ACCOUNTING
- 18. YELLOW: The PEOPLE piece Human Capital (NC) DIRTY BROWN: The ECONOMIC piece Man Built Capital (MBC) GREEN: NATURE, ENVIRONMENT Natural Capital (NC) MULTI DIMENSION IMPACT ACCOUNTING COLOR KEY
- 19. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built Capital Natural Capital
- 20. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built Capital Natural Capital
- 21. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built Capital Natural Capital
- 22. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built Capital Natural Capital
- 23. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built Capital Natural Capital
- 24. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built Capital Natural Capital
- 25. Trajectory to disaster! This must be changed to this MULTI DIMENSION IMPACT ACCOUNTING
- 26. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built Capital Natural Capital
- 27. PEOPLE progressing MBC* efficient PLANET healthy MULTI DIMENSION IMPACT ACCOUNTING * Man Built Capital Man Built Structures and Systems
- 28. For the past 50 years, using conventional metrics, the system has optimized for performance of FINANCIAL CAPITAL but while ignoring everything else ... MULTI DIMENSION IMPACT ACCOUNTING
- 29. ECONOMIC GROWTH 1970 to 2011 CORPORATE PROFITS ... GDP LABOR INCOME ... MULTI DIMENSION IMPACT ACCOUNTING 3,600% 1,500% 1,100%
- 30. MULTI DIMENSION IMPACT ACCOUNTING
- 31. According to Federal Reserve data, wages and salaries as a % of GDP has declined steadily since 1970 MULTI DIMENSION IMPACT ACCOUNTING
- 32. MULTI DIMENSION IMPACT ACCOUNTING
- 33. In the 1950s and 1960s wages and salaries were gaining moderately while profits were declining. Since the 1980s profits have increased strongly while wages and salaries have been decreasing as a share of GDP. MULTI DIMENSION IMPACT ACCOUNTING
- 34. MULTI DIMENSION IMPACT ACCOUNTING
- 35. Robert Reich former Secretary of Labor in the 1990s shows pay rose with productivity until 1979 and then it didn't ... MULTI DIMENSION IMPACT ACCOUNTING
- 36. MULTI DIMENSION IMPACT ACCOUNTING
- 37. Since 1950 world PER CAPITA GDP has grown more rapidly than at any previous time ... MULTI DIMENSION IMPACT ACCOUNTING
- 38. MULTI DIMENSION IMPACT ACCOUNTING
- 39. but this is an average that does not mean very much MULTI DIMENSION IMPACT ACCOUNTING
- 40. Rich countries and rich people have increased their income and wealth much more significantly than poor countries and poor people as these data for the USA and the UK show ... MULTI DIMENSION IMPACT ACCOUNTING
- 41. MULTI DIMENSION IMPACT ACCOUNTING
- 42. but the metrics are not getting it right MULTI DIMENSION IMPACT ACCOUNTING
- 43. The growth in GDP for the USA over the period from 1945 to the present has been phenomenal but the HAPPINESS of Americans has deteriorated in this time. MULTI DIMENSION IMPACT ACCOUNTING
- 44. Corporate money profit performance over the past fifty years has been impressive MULTI DIMENSION IMPACT ACCOUNTING
- 45. The growth in GDP also has a strong correlation with increasing stress on planetary resources and the environment. MULTI DIMENSION IMPACT ACCOUNTING
- 46. The growth in global population is not as serious a problem as the growth in GDP MULTI DIMENSION IMPACT ACCOUNTING
- 47. MULTI DIMENSION IMPACT ACCOUNTING
- 48. THE CHALLENGE MULTI DIMENSION IMPACT ACCOUNTING
- 49. There has been an amazing improvement in productivity over the past 40 years and almost all the benefits derived from the increases in productivity have accrued to owners. MULTI DIMENSION IMPACT ACCOUNTING
- 50. This is what Business Schools teach and they do it very well. MULTI DIMENSION IMPACT ACCOUNTING
- 51. In order for the socio-enviro- economic system to be optimized for people and planet and profit, an improved system of metrics is an absolutely essential prerequisite. MULTI DIMENSION IMPACT ACCOUNTING
- 52. and this is what Multi Dimension Impact Accounting (MDIA) is all about. MULTI DIMENSION IMPACT ACCOUNTING
- 53. REMINDER This slideset is A WORK-IN-PROGRESS. It will be upgraded periodically. It is part of a series of more than 50 slidesets. Navigation to all of these is available here: FEEDBACK is welcome. Please email to Peter Burgess [email protected] with a catchy phrase in the subject line so that it gets attention, and please identify the specific slideset(s) involved. This explanation is version v150801. The most current text is available at: MULTI DIMENSION IMPACT ACCOUNTING http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=txt00010199 http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=N1-Slidesets-p3
- 54. THANK YOU Some links and contact information: Peter Burgess [email protected] Peter Burgess LinkedIn profile https://www.linkedin.com/in/peterburgess1 Link to TrueValueMetrics.org website http://www.truevaluemetrics.org/ Link to navigation to other slides in this series: MULTI DIMENSION IMPACT ACCOUNTING http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=N1-Slidesets-p3